Electricity Supply Corporation of Malawi (Escom) Limited has asked Malawi Energy Regulatory Authority (Mera) to transfer the single buyer licence for electricity to Power Market Limited (PML) which is on the verge of revival.
Escom’s application marks a critical step towards the re-establishment of PML which was dissolved in 2022.
Mera has since issued a public statement announcing that Escom has done so jointly with PML and has called on those “desiring to object” to the move to lodge written objections within 30 days.
In a written response yesterday, Mera spokesperson Fitina Khonje said the regulator was yet to receive any complaints since the revamping process started.
Last month, Attorney General Frank Mbeta successfully moved the High Court of Malawi to reverse PML’s voluntary liquidation.
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However, the decision to re-establish the company has not pleased some sectors, including Consumers Association of Malawi (Cama), which fears the move will result in increased electricity tariffs.
Currently, consumers are paying an average of K160.13 per kilowatt-hour, and the association fears that the tariffs may increase by up to 100 percent within a short time.
Cama executive director John Kapito said in an interview that they will write Mera in protest, although he doubts whether their concerns will be taken into account.
“These are public issues, it will affect the consumers, therefore the views that will be expressed should be made public,” he said in an interview yesterday.
Earlier this month, Cama also issued a statement opposing the decision, saying consumers are already struggling to afford the current tariffs, which are among the highest in Africa.
Energy affairs commentator Kandi Padambo, a former Escom CEO, has also questioned the government’s plan to revive the company, saying establishing a dedicated single buyer makes little economic sense for a power market with a capacity of less than 600 megawatts.
He said Escom is well-positioned to purchase and transmit electricity.
Ministry of Energy and Mining spokesperson Joana Thaundi told The Nation last week that PML would not require fresh capital because operational funds are already incorporated into electricity tariffs approved by Mera.
PML initially secured a single buyer licence from Mera in December 2020 under the 2016 Electricity Amendment Act before transferring it back to Escom in 2023.
Under the current arrangement, Escom buys power from the Electricity Generation Company and transmits it to the final consumer.
